Prepare an adjusted trial balance & Income Statement and Statement of Retained Earnings

July 1 Began business by making a deposit in a company bank account of $40,000, in exchange

for 4,000 shares of $10 par value common stock.

July 3 Paid the current month's rent, $2,500

July 5 Paid the premium on a 1-year insurance policy, $3,600

July 7 Purchased supplies on account from Little Company, $700.

July 10 Paid employee salaries, $2,800

July 14 Purchased equipment from Lake Company, $9,500. Paid $1,500 down and the balance was placed on account. Payments will be $500.00 per month for 20 months. The first payment is due 8/1.

July 15 Received cash for preparing tax returns for the first half of July, $6,500

July 19 Made a payment on account to Lake Company, $500.

July 31 Received cash for preparing tax returns for the last half of July, $8,250

July 31 Declared and paid cash dividends of $450.

a) One month's insurance has expired. The remaining inventory of supplies is $300. 2) The estimated depreciation on equipment is $125. 1) The estimated income taxes are $2700. Debit Credit General Journal Date Description (Account Name) 31-Jul Insruance Expense Prepaid Insurance 300 300 400 31-Jul Supplies Expense Office Supplies 400 125 31-Jul Depreciation Extp-Computer Accumulated Depreciation Exp 125 2,700 31-Jul Income Tax Expense Income Tax Payable 2.700